Consolidating debt might secretly slash your expenses rent

How Debt Consolidation Works

When you consolidate your debt, you essentially take out a new loan to pay off your existing debts. This new loan often comes with a lower interest rate, which reduces the amount of interest you pay over time. By lowering your interest payments, you can allocate more of your income toward other essential expenses, such as rent, utilities, or savings. It's important to compare different consolidation options, such as personal loans, balance transfer credit cards, or home equity loans, to find the best fit for your financial situation.